Data-to-Deal: Component 7. Finance: Developing Financing Strategies – A Best Practice Brief

This best practice brief presents Component 7 of the Data-to-Deal (D2D) framework which addresses Finance. This component focuses on the development of a national finance strategy to support transitions in low- and middle-income countries (LMICs). While many LMICs have developed costed transition plans, implementation remains constrained by access to finance and coordinated investment efforts. Component 7 provides a structured approach to align national priorities with the financial landscape by identifying institutional responsibilities, mapping finance sources, analysing sector cashflows, and structuring viable investment packages. It links closely with preceding D2D components, ensuring policy coherence, technical realism, and stakeholder alignment, as well as offering practical guidance for Ministries of Finance to embed transition priorities within macroeconomic, fiscal, and regulatory frameworks. Drawing on international case studies and diagnostic tools, the brief outlines how governments can blend public and private finance, manage risks such as currency volatility, and prepare bankable proposals that attract investors. By operationalising this component, governments can maximise the impact of scarce concessional resources, plan for a pipeline of investable projects, and strengthen coordination between domestic institutions and international partners.